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Bank credit growth improves to 6.2% in Q3FY21: RBI

However, credit growth in Q3FY21 was lower when compared to 7.4 percent growth recorded a year ago

The Reserve Bank of India (RBI) in its latest data has showed that bank credit growth on a year-on-year basis improved to 6.2 percent in the December quarter (Q3FY21) from 5.8 percent in the previous three-month period. However, credit growth in Q3FY21 was lower when compared to 7.4 percent growth recorded a year ago. 

According to the data, growth in credit by private sector banks decelerated considerably to 6.7 percent in the quarter ended December 2020 as against 13.1 percent a year ago. Advances growth in public sector banks improved to 6.5 percent in December 2020 quarter as against 3.7 percent in the same period of 2019. Aggregate deposits growth (y-o-y) of scheduled commercial banks increased to 11.1 percent in December 2020 quarter as against 10 percent a year ago. Annual growth in current, savings and term deposits of banks stood at 13 percent, 15.8 per cent and 8.2 percent.

The data further showed that higher growth in current account and savings account (CASA) deposits resulted in their higher share of 42.8 percent in total deposits as against 41.2 percent a year ago. All-India credit-deposit (C-D) ratio improved marginally to 72.5 percent in the reporting quarter from 72 per cent in the previous quarter.